2022 Honda Civic Ex on 2040-cars

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Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Honda recalls 1.4 million vehicles in the U.S.

DETROIT — Honda is recalling over 1.4 million vehicles in the U.S. to repair drive shafts that can break, window switches that can overheat and a software flaw. The software recall includes 737,000 Accords from 2018 to 2020 and Insights from 2019 and 2020. A programming flaw in a control computer can cause the rear camera, turn signals and windshield wipers to malfunction. Owners will be notified in late January about when they should take their vehicles to a dealer for repairs. Two drive shaft recalls cover 430,000 Honda Civic Hybrids from 2012, the 2007 through 2014 Honda Fit, the 2013 through 2015 Acura ILX and the 2013 through 2015 Honda Accord. TheyÂ’re in 22 states where salt is used to clear roads in the winter. The drive shafts can break due to corrosion. Dealers will inspect the left and right drive shafts and replace them if needed. Parts arenÂ’t available yet. Owners will get an initial notification in February and will be told later when to go to a dealer. About 268,000 CR-Vs from 2002 through 2006 are included in the power window switch recall. Water can get into an open driverÂ’s window and cause an electrical short, possibly touching off a fire. ItÂ’s the second recall for the same issue. The cars were recalled starting in October of 2012, but the repairs didnÂ’t work. Honda says it has reports of 16 fires but no injuries. Honda says owners should take the SUVs in for repairs as soon as they get a recall notice. Those will be mailed starting in late January. Owners can also check https://owners.honda.com/service-maintenance/recalls or call (888) 234-2138 to see if their vehicle is affected.

Honda signs on as Pikes Peak sponsor, race participant

Honda plans to storm the Pikes Peak International Hill Climb on June 30, entering ten cars in nine classes at the race to the sky, and signing on as a corporate sponsor. Part of the company's return to grassroots racing - if that's what you can call factory-backed efforts - the banners of Honda R&D and Honda North America will fly on these entries: a first-gen Acura NSX, an Acura TL SH-AWD, Honda CR-Z, Honda Fit EV, one CRF450R and two CRF250R motorcycles, a CBR1000RR motorcycle and a TRX450 ATV.
One more entry, details of which are to be announced later, will be driven by IndyCar pilot Simon Pagenaud of Schmidt Hamilton HP Motorsports. LoveFab (pictured above during practice last year) will be there with its new, NSX-based Enviate, but as a privateer entry.
Honda's been to the mountain before, with high-powered gear in 2012 and record-setting EVs in 1994 and 1999, but it's never made noise like this. Have a read of the press release below for more info.